Tesaro shares surged 58% Monday after GlaxoSmithKlineagreed to buy the cancer treatment company for $75 per share, or about $5.1 billion.
The deal represents a more than 60% premium over Tesaro’s closing price on Friday of $46.38 per share. GlaxoSmithKline’s stock was 8.2% lower Monday.
“The acquisition of Tesaro will strengthen our pharmaceuticals business by accelerating the build of our oncology pipeline and commercial footprint, along with providing access to new scientific capabilities,” GlaxoSmithKline CEO Emma Walmsley said in a statement.
The acquisition hands Glaxo Tesaro’s ovarian cancer drug Zejula, which went on sale in the US and Europe last year. Zejula is one of a new class of drugs known as PARP inhibitors, which have increased survival rates for women with recurrent ovarian cancer. PARP inhibitors are also showing promise in other forms of cancer, such as lung, breast and prostate.